The latest version of the Reconciliation Bill allows the Backdoor Roth IRA to remain until couples hit that $450,000 income magic mark.

If a couple makes:

• $208,000 or less: Direct Roth Contributions.
• $208,001 - $449,999: Use the Backdoor Roth
• $450,000+: No Roth for you!

Why not just open the Roth option to couples up to $450,000 and then there’s no controversy? Backdoor Roths take one extra step, one extra day, and one extra tax form. It’s the same thing.

This is the problem, though, when you try to write tax legislation that at least 50 senators oppose in less than 2 months.

And at the end of the day, we’re talking about the taxability of $12,000 a year. That’s 2.6% of a $450,000 income for the entire year. Upsetting the entire apple cart over $4,500 in actual taxes due.